US, EU Reach Deal to Avert Trade War with 15% Tariffs

The United States and the European Union have reached a framework agreement to avert a full-scale trade war by setting a 15% tariff on most EU imports to the U.S., a rate lower than the initially threatened 30%. This deal, announced after a meeting between U.S. President Donald Trump and European Commission President Ursula von der Leyen, includes commitments for the EU to purchase $750 billion in U.S. energy products and invest $600 billion in the U.S. through 2029. While the agreement brings clarity and predictability to the transatlantic trade relationship, key sectors like pharmaceuticals remain excluded from the deal, with future tariffs on pharma expected not to exceed 15%. The deal also features a zero-for-zero tariff arrangement for aviation and aims to open European markets more fully to U.S. goods, including autos and agriculture. European and American officials emphasize that the agreement protects jobs and benefits businesses and consumers, although regulatory disputes and higher tariffs will continue to pose risks of future trade tensions.